Grupo Bimbo, the Mexican-based bakeries combine, has announced that a US bankruptcy court has dismissed an attempt by creditors to force its Argentine subsidiary, Compania de Alimentos Fargo, into Chapter 11 bankruptcy.
In a statement, Bimbo said the court had dismissed the attempt to put Fargo into involuntary Chapter 11, considering it “an improper action”. Bimbo added that the court had also dismissed “diverse claims and requests against Grupo Bimbo and its affiliates”.
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However, Bimbo confirmed that Fargo remained bound by Argentine “concurso” bankruptcy proceedings. Fargo has been subject to these proceedings since 2002.
In September, a group of bondholders, representing about 60% of Fargo bonds, had filed the Chapter 11 petition with the Southern District of New York Bankruptcy Court.
